Patna: The Bihar government has introduced the Bihar Sugarcane Industry Investment Promotion Policy 2026 to attract investment in the sugar industry and promote sugarcane-based businesses across the state. Under the new policy, investors planning to establish sugar mills will be provided up to 40 acres of land at a token amount of Re 1.
The move is aimed at helping Bihar achieve its target of setting up 25 new sugar mills, while also reviving closed sugar mills and creating employment opportunities for the state’s youth.
Bihar Government Targets 25 New Sugar Mills
The Bihar government has set a target of establishing 25 new sugar mills and reopening closed sugar mills as part of its employment and industrial development strategy.
The initiative is linked to the government’s objective of providing employment opportunities to one crore youth within five years.
To speed up the establishment of new sugar mills, the state government has also constituted a high-level committee headed by the Chief Secretary.
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40 Acres of Land to Be Offered at Re 1
Under the newly introduced policy, investors interested in setting up sugar mills in Bihar will be eligible for land at a nominal token amount.
Key provisions include:
- Up to 40 acres of land will be made available for setting up a sugar mill.
- The land will be provided at a token amount of Re 1.
- The measure is aimed at reducing the initial investment burden on prospective investors.
- The policy seeks to attract new investment in Bihar’s sugarcane-based industries.
The policy has been implemented on the directions of Chief Minister Samrat Choudhary to promote the development of sugarcane-based industries in Bihar.
New Sugar Mills to Get Up to ₹70 Crore Incentive
The Bihar government has announced substantial financial incentives for investors establishing new sugar mills.
For a new sugar mill with a minimum capacity of 3,500 TCD (tonnes of cane crushed per day), the government will provide an incentive of up to ₹70 crore.
The incentive structure includes:
- ₹70 crore incentive for a new sugar mill with a minimum capacity of 3,500 TCD.
- The incentive will be released in five equal annual instalments.
- For capacity above 3,500 TCD, an additional ₹2 crore incentive will be provided for every 100 TCD increase.
The incentive is intended to encourage investors to establish new and larger-capacity sugar mills in the state.
Incentives for Expansion of Existing Sugar Mills
The policy also provides financial support to operational sugar mills seeking to expand their crushing capacity.
Under the capacity expansion provisions:
- ₹15 crore incentive will be provided for every 1,000 TCD capacity expansion.
- An additional ₹1.5 crore incentive will be provided for every further 100 TCD capacity expansion.
The measure is expected to encourage existing sugar mills to expand their operations and increase sugarcane processing capacity.
Policy to Boost Sugarcane-Based Industries
The Bihar Sugarcane Industry Investment Promotion Policy 2026 is aimed at creating a favourable investment environment for sugarcane-based industries.
The combination of nominal-cost land and financial incentives is expected to make it easier for investors to establish new sugar mills and expand existing facilities.
The policy focuses on:
- Attracting private investment in the sugar industry.
- Increasing sugarcane processing capacity.
- Supporting the establishment of 25 new sugar mills.
- Reviving closed sugar mills.
- Generating employment opportunities.
- Promoting sugarcane-based industries across Bihar.
Focus on Employment Generation
The development of new and expanded sugar mills is expected to support employment generation in Bihar, both directly and through allied activities linked to the sugarcane industry.
The government’s broader target is to provide employment opportunities to one crore youth over five years. The planned expansion of the sugar industry is being positioned as an important part of this objective.
